Load-shedding blamed for slow economic growth

President Cyril Ramaphosa will deliver the Sona in the National Assembly.

JOHANNESBURG - President Cyril Ramaphosa has blamed load-shedding and irregular power supply for the lower than anticipated first quarter numbers.

Earlier this year, South Africa experienced rolling blackouts and communities were plunged into darkness as the electricity supply and demand came under huge pressure.

“One reason for the lacklustre economic performance has been the load shedding early this year, together with the continued uncertainty in the supply of electricity and the state of Eskom,” Ramaphosa said during his State of the Nation Address.

“The lesson is clear: for growth, we need a reliable and sustainable supply of electricity.”

READ: Ramaphosa says Eskom is in 'crisis'

The President said a Special Appropriation Bill will be tabled on an urgent basis to allocate a significant portion of the R230-billion fiscal support that Eskom will require over the next 10-years in the early years.

Ramaphosa emphasized that Eskom is to vital to the economy to be allowed to fail.

He further said details will be provided by Minister of Finance Tito Mboweni in due course.

Source
eNCA